XRP has recently rebounded, but short-selling bets in the futures market increased further, blockchain media outlet Decrypt reported on Sept. 21 (local time).

XRP short trading volume over the past 24 hours was $2.18 billion, slightly above long volume of $2.12 billion.

XRP fell to $1.25 on Sept. 16, then recovered to $1.482 as of the time of writing. That marked a gain of 18.5 percent from the low, but futures markets continued to show bets on further declines. Over the past 24 hours, shorts accounted for 50.67 percent of taker trades, compared with 49.33 percent for longs.

Exchange-by-exchange positioning was not aligned in one direction. On Binance, the retail long-short ratio was 2.25, entering a "bullish" zone, while whale accounts recorded 2.62, described as "extremely bullish." Binance whale positions were also 2.10, indicating bullishness. On OKX, the retail ratio was 1.91 and whale positions were 2.18, both pointing to bullishness. Bybit showed a stronger long bias. Both retail and whale accounts posted 3.12, rising to an "extremely bullish" level.

Smart money indicators sent a different signal. On Binance and Bybit, XRP sentiment was rated "extremely bearish." OKX alone showed "extremely bullish." While retail and whales put more weight on the rebound continuing, some sophisticated funds or algorithm-based traders were betting that the current rebound could lose strength. The market interpreted this as them using the current upswing as an opportunity to bet on a pullback.

Liquidation flows also showed where the burden was concentrated during the rebound. Total liquidations over the past 24 hours were $9,463,865, of which short-position liquidations accounted for $7,984,460. Long liquidations were $1,479,404. Over the past hour, liquidations totalled $4.67 million, including $4.55 million in shorts, while longs were limited to $123,150.

The same pattern continued over longer time frames. Liquidations over the past 4 hours were $5.49 million, including $5.34 million from shorts. Over the past 12 hours, total liquidations were $7.31 million, with short liquidations making up most of that at $6.52 million. XRP volatility exceeded 8.28 percent, and 1,928 traders were forced out of positions globally. The largest single liquidation on Sept. 21 was $1,047,857.

Current liquidation intensity remained at 0.70 times the 7-day average and 0.27 times the peak over the past 30 days. As leverage across the market declines, the structure has been confirmed in which excessive short positions come under pressure first. Still, the overall market has not yet reached a stage of cascading liquidations.

This leaves room for the possibility of a short squeeze in the short term. If XRP holds above $1.48, additional short liquidations could translate into buying demand and test the $1.60 to $1.65 resistance zone. If it breaks through $1.60 to $1.65, pressure on shorts would intensify further, and $1.80 is cited as the next target zone.

A bearish scenario also remains valid. If the "extremely bearish" assessment shown by smart money on Binance and Bybit proves correct and the rebound loses momentum, the $1.35 to $1.38 zone could act as first support. If it slips further, the Sept. 16 low of $1.25 could re-emerge as a key downside level.